THL director voted off on technicality

Tourism Holdings director John Bongard was voted off the
board at the annual meeting this week when a technicality saw
28% of the company's ordinary votes declared invalid and not
counted.

Mr Bongard was up for re-election as a director.

Results of the shareholder poll were 11.5 million votes for
his re-election and 13.9 million votes against. But 31.1
million shares voting in favour were not counted because of a
technicality regarding their proxy status.

THL chairman Keith Smith said the board was disappointed that
with the majority of holders in favour of the resolution, a
highly capable director had left the board.

Mr Bongard's details had been removed from the THL website
yesterday.

Craigs Investment Partners broker Chris Timms said he had
never heard of any other company that had managed to have a
director voted off the board in such a manner.

"I'm not sure how it could have happened. Maybe there was
something wrong with the form. I don't know how else they
could get 28% of votes declared invalid.

"This is a major 'shoot yourself in the foot' moment," Mr
Timms said.

THL chief executive Grant Webster was not available for
comment.

In response to a shareholder's request, THL also issued an
updated forecast trading result for the six months to
December.

Earnings before interest and tax (ebit) would be in the range
of $4.2 million to $5 million and an after-tax loss would be
in the range of $1 million to $500,000.

That was down on the previous corresponding period's ebit of
$11.5 million and after-tax profit of $4.2 million.

Chief financial officer Ian Lewington said the forecast
reduction in ebit reflected the impact of the Rugby World Cup
on the previous corresponding period's New Zealand rentals
results, an estimated $4.5 million.

In addition, there were costs associated with the merger of
the New Zealand rentals business with Kea Campers and United
Campervans. Other impacts came from the change in accounting
treatment for fleet rebates in the United States operation.